Title XIII, COMMERCE (Ch. 505 - 554I)

A society may create, maintain, and operate, or may establish organizations to operate, not-for-profit institutions to further the purposes permitted by section 512B.6, subsection 1 , paragraph “a” , subparagraph (2). The institutions may furnish services free or at a reasonable …

1. A domestic society may, by a reinsurance agreement, cede any individual risk or risks in whole or in part to an insurer, other than another fraternal benefit society, having the power to make such reinsurance agreements and authorized to do business in this state, or if not so…

1. A domestic society may consolidate or merge with a domestic society, foreign society, or society chartered under the laws of Canada or a Canadian province or territory, by complying with this section . The society shall file with the commissioner all of the following: a. A cer…

A domestic fraternal benefit society may be converted and licensed as a mutual life insurance company by compliance with all the requirements of the general insurance laws for mutual life insurance companies. A plan of conversion shall be prepared in writing by the board of direc…

1. A society may provide any or all of the following contractual benefits in any form: a. Death benefits. b. Endowment benefits. c. Annuity benefits. d. Temporary or permanent disability benefits. e. Hospital, medical, or nursing benefits. f. Monument or tombstone benefits to the…

1. The owner of a benefit contract may change the beneficiary or beneficiaries in accordance with the laws or regulations of the society unless the owner waives this right by specifically requesting in writing that the beneficiary designation be irrevocable. A society may, throug…

Money or other benefit, charity, relief, or aid to be paid, provided, or rendered by a society, is not liable to attachment, garnishment, or other process, or to be seized, taken, appropriated, or applied by any legal or equitable process or operation of law to pay a debt or liab…

1. A society authorized to do business in this state shall issue to each owner of a benefit contract a certificate specifying the amount of benefits provided pursuant to the benefit contract. The certificate, together with any riders or endorsements attached to the certificate, t…

As used in this chapter , unless the context otherwise requires: 1. “Alien society” means an association organized under the laws of another country. 2. “Benefit contract” means the agreement for provision of benefits authorized by section 512B.16 , as that agreement is described…

1. For certificates issued before January 1, 1991, the value of every paid-up nonforfeiture benefit and the amount of any cash surrendered value, loan, or other option granted shall comply with chapter 512, Code 1989 . 2. For certificates issued on or after January 1, 1991, for w…

A society shall invest the society’s funds only as authorized by the laws of this state for the investment of assets of life insurers and subject to the same limitations. A foreign or alien society permitted or seeking to do business in this state which invests its funds in accor…

A society incorporated on or after July 1, 1993, shall have in cash, or in securities which are authorized for investment purposes for insurance companies pursuant to section 512B.21 , surplus in an amount not less than five million dollars. 93 Acts, ch 88, §14

1. All assets shall be held, invested, and disbursed for the use and benefit of the society and a member or beneficiary shall not have or acquire individual rights in the society’s assets or become entitled to an apportionment on the surrender of any part of the society’s assets,…

1. Standards of valuation for certificates issued before January 1, 1991, are those provided by chapter 512, Code 1989 . 2. a. The minimum standards of valuation for certificates issued on or after January 1, 1991, shall be based on the following tables: (1) For certificates of l…

Reports shall be filed in accordance with this section . 1. A society transacting business in this state, on or before March 1 annually, unless for cause shown the time has been extended by the commissioner, shall file with the commissioner a true statement of its financial condi…

The authority of a society to transact business in this state may be renewed annually. A license terminates on the first day of June following issuance or renewal. A society shall submit annually on or before March 1 a completed application for renewal of its license. For each li…

1. The commissioner, or the commissioner’s designee, may examine a domestic, foreign, or alien society transacting or applying for admission to transact business in this state in the same manner as authorized for examination of a domestic, foreign, or alien insurer. Requirements …

A foreign or alien society shall not transact business in this state without a license issued by the commissioner. A society desiring admission to this state shall substantially comply with the requirements and limitations of this chapter applicable to domestic societies. A socie…

1. When the commissioner upon investigation finds that a domestic society has exceeded its powers; failed to comply with a provision of this chapter ; failed to fulfill a contract in good faith; failed to maintain a membership of not less than four hundred after an existence of o…

1. When the commissioner upon investigation finds that a foreign or alien society transacting or applying to transact business in this state has exceeded its powers; failed to comply with a provision of this chapter ; failed to fulfill a contract in good faith; or conducted its b…

An incorporated society, order, or supreme lodge, without capital stock, including one exempted under section 512B.36, subsection 1 , paragraph “b” , whether incorporated or not, conducted solely for the benefit of its members and their beneficiaries and not for profit, operated …

A petition or complaint for injunction against a domestic, foreign, or alien society, or lodge shall not be recognized in a court of this state unless made by the attorney general upon request of the commissioner. 90 Acts, ch 1148, §31

A society is subject to chapter 507B relating to unfair insurance trade practices. However, chapter 507B does not apply to or affect the right of a society to determine its eligibility requirements for membership, and does not apply to or affect the offering of benefits exclusive…

1. A society authorized to do business in this state shall file in the office of the commissioner a power of attorney and an agreement in writing that service of process in any action or proceeding against the society may be served on the commissioner and shall be of the same leg…

All decisions and findings of the commissioner made under this chapter are subject to review pursuant to chapter 17A . 90 Acts, ch 1148, §35

1. It shall be unlawful for a person knowingly to make a false or fraudulent statement or representation in or relating to an application for membership or for the purpose of obtaining money from or a benefit in a society. 2. It shall be unlawful for a person to willfully make a …

1. This chapter does not affect or apply to any of the following: a. Grand or subordinate lodges of societies, orders, or associations now doing business in this state which provide benefits exclusively through local or subordinate lodges. b. Orders, societies, or associations wh…

1. A society is operating on the lodge system if it has a supreme governing body and subordinate lodges into which members are elected, initiated, or admitted in accordance with its laws, regulations, and ritual. Subordinate lodges shall be required by the laws of the society to …

A society has a representative form of government if all of the following apply: 1. It has a supreme governing body constituted in one of the following ways: a. Assembly. The supreme governing body is an assembly composed of delegates elected directly by the members or at interme…

1. a. A society shall operate for the benefit of members and their beneficiaries by fulfilling both of the following purposes: (1) Providing benefits as specified in section 512B.16 . (2) Operating for one or more social, intellectual, educational, charitable, benevolent, moral, …

1. In its laws or regulations, a society shall at minimum specify all of the following: a. Eligibility standards for each membership class. If benefits are provided on the lives of children, the minimum age for adult membership shall be set at not less than age fifteen and not gr…

1. The principal office of a domestic society shall be located in this state. The meetings of its supreme governing body may be held anywhere the society has at least one subordinate lodge, or in another location as determined by the supreme governing body, and all business trans…

1. The officers and members of the supreme governing body or any subordinate body of a society are not personally liable for any benefits provided by a society. 2. a. A person may be indemnified and reimbursed by a society for expenses reasonably incurred by, and liabilities impo…